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Green energy project at risk

Fitzsimmons Creek IPP challenged by rising construction costs
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Photo by Maureen Provencal

A green power project, set to transform the glacier-fresh water from Fitzsimmons Creek into renewable energy, is in jeopardy.

Rising constructions costs and delays due in part to the 2010 Olympics here have pushed up the capital cost of the project since it was first given the green light from BC Hydro in 2001.

"With the rising construction costs and the delays incurred because of the Sliding Centre and the whole Olympic bid that came in … the project is to the point (where we have to) reassess it and take a good hard look at whether or not it’ll go," said Ledcor project manager Kelly Boychuk this week.

The final decision to walk away from the independent power project (IPP) has not been made yet but if developers are to realize any cost savings or efficiencies from building the run of river project alongside construction of Whistler Sliding Centre a decision will need to be made soon.

Construction for the sliding centre – home of the bobsled, luge and skeleton events in 2010 – is set to begin this spring.

Despite the economic challenges facing the IPP, which are estimated at a $1 million shortfall, stakeholders are still trying to find ways to make the project work.

In the fall, energy utility Terasen reviewed the project and confirmed Ledcor’s predictions – the IPP is not economically feasible as proposed.

"We’ve undertaken a fair bit of work to try and determine whether or not the project could proceed and trying to find ways to reduce the cost of the project but at this point it would not be economic to proceed," said Terasen’s director of corporate development Dietz Kellmann.

Both Boychuk and Kellmann agree; in order to make money from the water in Fitzsimmons Creek someone needs to come up with a new and innovative idea.

The run of river project was originally slated to cost roughly $12 to $13 million. But over the past two years to cost of steel and concrete and labour has soared in B.C.

The project is now pushing the $14 million dollar mark.

Ledcor was given the go-ahead from BC Hydro in 2001 when the utility issued them an Electricity Purchase Agreement. At that time several other projects were also issued agreements, among them the Brandywine IPP, the Rutherford IPP and the Furry Creek IPP. Those agreements with Hydro marked the first step in a long list of approvals and community consultation.

All of those IPP’s are now complete and producing power in the Sea to Sky corridor.

But when Vancouver and Whistler won the bid for the Olympics in 2003, the Fitzsimmons project was pushed to the backburner as the design began on the Whistler Sliding Centre.

Boychuk said the province had issued a letter which essentially put a freeze or a reserve on the run of river project.

By August 2004 Ledcor was asked to find an alternate route because engineers had said the project’s underground pipe could not lie beneath the bob/luge track due to security concerns for the Games.

Vancouver Organizing Committee spokesperson Maureen Douglas said they have always tried to work in concert with the private developer to ensure both projects could move ahead.

"We’ve been quite happy to work cooperatively and answer any questions and assist in modifications that would benefit both of us," she said.

At the same time, she said, the Olympics are not responsible for any delays.

"We believe that our process has not delayed their process," she said. "They were still in the design stage as were we which allowed amendments to occur for both parties.

"We’re supportive of green energy but this is an independent project and… it’s completely independent of ours. The proponent has to assess whether or not that project works for them."

She also added that there was no formal agreement between VANOC and Ledcor and the project, while an example of sustainability, was not a part of VANOC’s portfolio of sustainability initiatives.

To date Ledcor has invested $1.5 million in the project.

Whistler-Blackcomb, which has supported the Fitzsimmons IPP from the outset, is still holding out hope that it can be done by the Olympics.

"Our door is open to find a partnership formation that can make this happen sooner than later," said Arthur DeJong, mountain planning and environmental resource manager with Whistler-Blackcomb. "Clearly we would like to see support in the short-term."

He also talked passionately of the synergies between the renewable energy project sitting next to the Whistler Sliding Centre, the biggest energy consumer of the Games.

"It’s a natural marriage," said DeJong.

Still, if the project can’t be done with the sliding centre, Whistler-Blackcomb has ensured the door to the Fitzsimmons Creek has not closed forever.

"The Fitzsimmons project will never be taken off the table because our agreement with the partnership we have with VANOC is that a right of way for a penstock routing must be maintained whether the project happens this year or ten years from now," said DeJong.

"There is consensus amongst energy experts that it’s just a matter of time for this project to (be economically feasible)."